Working Paper

German unification and the European monetary system: a quantitative analysis


Abstract: This paper uses a macroeconomic model with rational expectations to analyze issues related to German unification. A principal focus of the paper is the effect of unification on member countries of the European Monetary System. Under certain conditions, German unification has a contractionary effect on other EMS countries. We explore the implications for EMS and other countries of alternative German fiscal and monetary policies.

Keywords: European Monetary System (Organization); Germany;

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File(s): File format is application/pdf http://www.federalreserve.gov/pubs/ifdp/1992/421/ifdp421.pdf

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Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: International Finance Discussion Papers

Publication Date: 1992

Number: 421